Oil Prices Finish Up Slightly on Saudi Production Cuts and Cold Weather in Northeast

Announcements of major production cuts and unusually cold weather predictions outweighed persistent demand concerns stemming from the worldwide economic slowdown, making for increases in crude and heating oil prices on NYMEX.  Crude gained $0.19 today, settling at $39.50 a barrel at market’s close.  Heating oil rose 3.3% an investors anticipated increased demand later this week, when the National Weather service predicted lower-than normal temperatures for the Northeast and Midwest, the two largest heating oil-consuming regions.

Oil prices increased despite another down-revision of oil prices by the Energy Information Administration.  The EIA revised its prediction for the average per-barrel price of West Texas Intermediate crude to $43.25 a barrel, from $51 a barrel last month, the AFP reported.

HEAT USA price experts reported an overall price increase in retail heating oil prices today, although the average price retreated from its 7 cent increase that took effect at 10:30 this morning.

HEAT USA Price Report
Evening projection (for Wednesday’s average retail heating oil price per gallon): UP $0.04 (from Tuesday’s open)